10 Best Gold ETFs in India to Invest in 2025

Gold is breaking all the records and is trading near ₹90,000 (per 10 grams) in India. Investors are actively moving towards this safe haven instrument driven by rising global uncertainty and broader market volatility.

Are you also looking to invest in this gold rally but don’t have the huge money to buy gold jewelry or biscuits? You can certainly explore the gold ETFs which helps you invest in gold at a lower cost and you can also trade in them like a stock. So, let’s discuss in detail the best gold ETFs in India, their benefits, and taxation rules.

Table of Content hide

1 What are Gold ETFs?

1.1 WHY SMC

2 10 Best Gold ETFs in India for 2025

2.1 Details of the Best Gold ETFs in India

2.1.1 1. LIC MF Gold ETF

2.1.2 2. Invesco India Gold ETF

2.1.3 3. HDFC Gold ETF

2.1.4 4. UTI Gold ETF

2.1.5 WHY SMC

2.1.6 5. Aditya Birla Sun Life Gold ETF

2.1.7 6. Kotak Gold ETF

2.1.8 7. Axis Gold ETF

2.1.9 8. SBI Gold ETF

2.1.10 9. ICICI Prudential Gold ETF

2.1.11 10. Nippon India ETF Gold BeES

3 Benefits of Investing in Gold ETFs

3.1 Low Cost of Investing

3.2 Transparent Pricing

3.3 Easily Redeemable

3.4 No Holding and Making Charges

3.5 Ideal for Portfolio Diversification

4 Taxation Rule of Gold ETFs

5 How Gold ETFs are Different from Gold Mutual Funds?

6 Frequently Asked Questions – FAQs

6.1 1. Which is the best performing gold ETF in India?

6.2 2. What is the average return on gold ETF?

6.3 3. How many goldbees is 1 gram gold?

6.3.1 WHY SMC

What are Gold ETFs?

Gold ETFs (Exchange-Traded Funds) are the types of mutual funds that allow you to invest in gold without actually holding it physically. These funds passively track the domestic physical price of gold (gold bullion) and you can buy the gold ETFs like a stock of any company at its current market price.

Gold ETFs directly represent physical gold and it is held in a dematerialized format. One unit of gold ETF is equivalent to 1 gram of gold which is of very high purity. These funds provide the dual benefit of intangible gold holdings and simplified stock investment mode.

Though you actually bet on the gold’s price movements by buying the best gold ETFs in India, you cannot get the physical gold at the redemption. Instead, you will receive the amount at which gold ETF is trading in the market. Hence, it offers an easier way to invest and you can redeem your investments through few clicks on a Demat account.

WHY SMC

20 Lac+ unique clients
33+ Years of Serving

Advance Technical Analysis
Free Demat Account

10 Best Gold ETFs in India for 2025

In order to select the best funds, you can study the gold ETF returns over the last 5, 3, or 1 year. Additionally, you can also look for expense ratio, fund size, and trading volumes to select the right fund.

Here is the list of the 10 best gold ETFs in India to invest in for the long term period:

S. No.	Gold ETFs	NAV (₹)	Fund Size (₹ crores)	1-Year Returns	5-Year Returns	Expense Ratio
1.	LIC MF Gold ETF	8,038.57	263.43	33.01%	16.14%	0.41%
2.	Invesco India Gold ETF	7,777.75	232.61	34.08%	16.00%	0.55%
3.	HDFC Gold ETF	76.55	8,539.17	33.45%	15.90%	0.59%
4.	UTI Gold ETF	75.21	1,712.75	33.65%	15.86%	0.50%
5.	Aditya Birla Sun Life Gold ETF	78.15	1,042.57	33.46%	15.83%	0.54%
6.	Kotak Gold ETF	74.30	6,911.92	33.43%	15.78%	0.55%
7.	Axis Gold ETF	74.28	1,431.48	32.20%	15.77%	0.56%
8.	SBI Gold ETF	76.02	7,035.91	33.36%	15.71%	0.73%
9.	ICICI Prudential Gold ETF	76.13	7,080.79	33.55%	15.70%	0.50%
10.	Nippon India ETF Gold BeES	73.82	18,779.61	33.26%	15.53%	0.82%

*(Data as on March 18, 2025)

Details of the Best Gold ETFs in India

Here is the insight into the 10 best gold ETFs in India and all of these funds are trading near one-year high prices.

1. LIC MF Gold ETF

LIC MF Gold ETF is trading at a price of ₹8,071.25 with a one-year range at ₹5,970 – ₹8,233. By investing ₹10,000 in this fund at a time, your total wealth would grow to ₹21,131 after 5 years.

2. Invesco India Gold ETF

Invesco India Gold ETF is trading at a price of ₹7,782.55 with a one-year range at ₹5,753 – ₹7,780. By investing ₹10,000 in this best gold ETF in India, your total wealth would grow to ₹21,006 after 5 years.

3. HDFC Gold ETF

HDFC Gold ETF is trading at a price of ₹76.36 with a one-year range at ₹56.74 – ₹77.3. By investing ₹10,000 in this fund at a time, your total wealth would grow to ₹20,917 after 5 years.

4. UTI Gold ETF

UTI Gold ETF is trading at a price of ₹75.05 with a one-year range at ₹55.15 – ₹75.35. By investing ₹10,000 in this fund at a time, your total wealth would grow to ₹20,874 after 5 years.

WHY SMC

20 Lac+ unique clients
33+ Years of Serving

Advance Technical Analysis
Free Demat Account

5. Aditya Birla Sun Life Gold ETF

This best gold ETF in India is trading at a price of ₹78.79 with a one-year range at ₹56.57 – ₹81. By investing ₹10,000 in Aditya Birla Sun Life Gold ETF, your total wealth would grow to ₹20,852 after 5 years.

6. Kotak Gold ETF

Kotak Gold ETF is trading at a price of ₹74.69 with a one-year range at ₹55.32 – ₹75.55. By investing ₹10,000 in this fund at a time, your total wealth would grow to ₹20,803 after 5 years.

7. Axis Gold ETF

Axis Gold ETF is trading at a price of ₹74.76 with a one-year range at ₹55.31 – ₹76.3. By investing ₹10,000 in this fund at a time, your total wealth would grow to ₹20,800 after 5 years in this best gold ETF in India.

8. SBI Gold ETF

SBI Gold ETF is trading at a price of ₹76.32 with a one-year range at ₹55.65 – ₹77.25. By investing ₹10,000 in this fund at a time, your total wealth would grow to ₹20,746 after 5 years.

9. ICICI Prudential Gold ETF

ICICI Prudential Gold ETF, one of the best gold ETFs, is trading at a price of ₹76.51 with a one-year range at ₹56.75 – ₹77.08. By investing ₹10,000 in this fund at a time, your total wealth would grow to ₹20,729 after 5 years.

10. Nippon India ETF Gold BeES

Nippon India ETF Gold BeES is trading at a price of ₹74.25 with a one-year range at ₹55.18 – ₹74.78. By investing ₹10,000 in this fund at a time, your total wealth would grow to ₹20,583 after 5 years.

*(Trading price as on March 19, 2025)

Benefits of Investing in Gold ETFs

The gold ETF returns are rising and giving investors their share of the bullish price run. However, there are other important advantages of investing in the best gold ETFs in India that you need to know.

Low Cost of Investing

Gold ETFs have a lower cost of investing as compared to physical gold and you can buy 1 gram of gold by buying a single unit of fund. For those, it is difficult to buy physical gold, these best gold ETFs in India can be an easy and low-cost solution.

Transparent Pricing

Gold ETFs track the physical price of gold and their pricing is transparent on the stock exchanges. Gold prices can differ in different states of India, but gold ETFs have a single price that is applicable at the time of buying and selling.

Easily Redeemable

Gold ETFs are easily redeemable like a stock, unlike other mutual funds which face an exit load or lock-in period. If gold prices are surging, then you can sell your ETF holdings for profit-booking. Additionally, for selling physical gold you have to visit the store and gold ETFs can be sold with a few clicks at home.

No Holding and Making Charges

Gold ETFs have no holding cost and you can easily hold them in online form in the Demat account. You can get the profit directly in your bank account in ETFs instead of incurring bank locker charges for holding physical gold. If you go to buy physical jewelry, then you also need to pay making charges.

Ideal for Portfolio Diversification

Gold has been considered a less volatile and inflationary hedge instrument for portfolio creation for ages. Ideally, 10% to 20% should be invested in gold for diversification and thereby if you do not have the high capital to buy physical gold, the best gold ETFs in India are best for you.

Taxation Rule of Gold ETFs

Though gold ETFs are traded like a stock, they are subject to the taxation rules of mutual funds. If funds are redeemed before 12 months of holding, then STCG (Short-term Capital Gains) will be taxed according to your income slab rate.

After 12 months of holdings, the gold ETF returns are considered LTCG (Long-term Capital Gains), making it eligible for 12.5% taxation.

How Gold ETFs are Different from Gold Mutual Funds?

Gold ETFs are bought at a current market price while gold mutual funds are bought at the closing NAV. Gold ETFs have higher liquidity than gold mutual funds as you can buy or sell them at any time on the exchange with no exit load.

However, you can invest in gold MF units through SIP (installments) whereas in gold ETFs, you have to pay the full price of a single unit (or stock). Both instruments are ideal options for investors who want to buy gold at a lower cost as compared to owning physical gold or jewelry.

Conclusion

Gold ETFs are one of the best investment avenues for investors looking to diversify their portfolio with yellow metal at a lower cost. With a seamless investing process through Demat account, the best gold ETFs in India will help you earn great returns when the market is witnessing a surge in gold prices and also protect your investments from market downturns. Gold ETFs are also susceptible to volatility and carry high risk, therefore thorough analysis is required before investing in them.

While investing in mutual funds or ETFs, it is better to do your research and keep your investment objective in mind. Open free Demat account with SMC Global Securities and keep investing in stocks or mutual funds like a pro.

Frequently Asked Questions – FAQs

1. Which is the best performing gold ETF in India?

One of the best gold ETFs in India is the Invesco India Gold ETF. It is the biggest gainer with returns of around 2.67% in the last 1 month in times when gold prices are reaching all-new heights.

2. What is the average return on gold ETF?

In February 2025, the average return generated by gold ETFs was 3.34%. In 2024, the average returns of gold ETFs were 20% with HDFC Gold ETF being a top performer which delivered 20.30% returns in 2024.